Shop price inflation at six-year high, says BRC

By KBBDaily on 6th March 2019 - 10:30am

The latest British Retail Consortium – BRC – Nielsen Shop Price Index has found that shop price inflation accelerated to 0.7% in February from the 0.4% recorded in January, marking the highest inflation rate since March 2013.

Non-food prices increased by 0.2% on a year-on-year basis last month compared with January’s decline of 0.2%. According to the BRC, this is the first time that the non-food sector has been inflationary since March 2013.

The BRC said it is “no surprise” that non-food prices were higher in February as retailers tend to introduce new products at full-price in the month after clearing stock and discounting in January. However, prices remain below 2016 levels and weak discretionary spending and “intense competition” means “heavy discounting” is likely to return.

“For the first time in almost six years the price of non-food goods rose, albeit slowly, as cost pressures which had been building in the supply chain over the past few years fed through into prices,” said BRC CEO Helen Dickinson.

“While price rises over the last six months have been relatively modest, a no-deal Brexit would have a much more immediate and dramatic effect. If this happens, prices of both food and non-food would rise as a result of any new tariffs, the cost impact of any delays at borders, increased administration, and the likely currency depreciation. Parliament must protect British consumers by agreeing a solution that avoids a chaotic no-deal Brexit.”